New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    A sum of ₹12,000 is invested for 3 years at a certain

    rate of simple interest. If the same sum was invested at the same rate for 2 years under compound interest (compounded annually), it would earn ₹240 more. Find the rate of interest per annum.
    A 5% Correct Answer Incorrect Answer
    B 6% Correct Answer Incorrect Answer
    C 8% Correct Answer Incorrect Answer
    D 10% Correct Answer Incorrect Answer
    E 12% Correct Answer Incorrect Answer

    Solution

    Let the rate of interest be R%. Simple interest for 3 years = (12,000 × R × 3) ÷ 100 = 360R Compound interest for 2 years = 12,000 × [(1 + R/100)^2 - 1] The difference is ₹240: 12,000 × [(1 + R/100)^2 - 1] - 360R = ₹240 Simplify and solve for R. Approximating, R ≈ 10%. Correct Option: d

    Practice Next